One issue is a lot of retail people bought GME options. If those expire in the money, these people will be on the hook to buy 100s of shares of GME and likely don't have the cash on hand to purchase the shares (which leave RH holding the bag).

On one hand, you could say RH shouldn't let people buy options if RH doesn't believe those people can pay up when the option expires. On the other hand, you have people buying options who maybe don't understand that you need cash to buy the shares if the option expires in the money.